J. Waite and P. Watcher’s trial balance as at 30 November 2001 is set out below. L01

£ £

Capital accounts: Waite 88,000 Watcher 64,000 Current accounts: Waite 2,500 Watcher 12,000 Drawings: Waite 13,300 Watcher 6,300 Land and buildings at cost 166,313 Motor vehicles at cost 65,000 :

Opening stock 9,000 Debtors 12,000 Creditors 18,500 Bank 6,501 Electricity 3,406 Wages 14,870 Telephone 1,350 Rent and business rates 6,660 Long-term loan 28,000 Sales 350,000 Purchases 245,000 Interest on loan 2,800 Other expenses 5,500 560,500 560,500 Notes:

1. Closing stock is £15,000.

2. Salaries are £18,000 for Waite and £16,000 for Watcher.

3. There is £300 owing for rent.

4. Depreciation for the year is £2,000 on land and buildings and £3,000 on motor vehicles.

The business was started on 1 December 2000.

5. The split of profits is 3 Watcher: 2 Waite.

Required:

Prepare the trading, profit and loss and appropriation account for year ended 30 November 2001 and the balance sheet as at 30 November 2001.